The Analytical Overview of the Main Currency Pairs on 2017.10.06

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.17588

Open: 1.17104

% chg. over the last day: -0.39

Day's range: 1.16860 – 1.17156

52 wk range: 1.0341 – 1.2069

Yesterday, the US dollar strengthened against the majors. The fall in the EUR/USD quotations has exceeded 50 points. Today the report on the US labor market is in the center of attention. Most experts expect a slowdown in the growth in the number of people employed in the non-agricultural sector of the country due to the aftermath of hurricanes. At the same time, preliminary statistics proved to be quite optimistic. The protocol of the ECB meeting on monetary policy indicated that some officials were concerned about the significant strengthening of the single currency since the beginning of this year. At the moment EUR/USD is testing the round level of 1.17000. We recommend opening positions from the key levels.

At 15:30 (GMT+3:00) a report on the labor market in the United States will be published.

Also, it is necessary to pay attention to the speeches of the FOMC representatives.

The price has fixed below 50 MA and 200 MA, which signals the power of sellers.

The MACD histogram is located in the negative zone and continues to decline, which indicates a bearish sentiment on EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.17000, 1.16000

Resistance levels: 1.17600, 1.18000

Today we recommend reducing risks when opening positions.

If the statistics on the labor market turns out to be positive, it is necessary to look for entry points to the market for opening short positions. The movement is tending to the round level of 1.16000. When following a position, one should use a trailing stop.

An alternative may be the growth of the EUR/USD currency pair to the level of 1.17600-1.17800.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32407

Open: 1.31175

% chg. over the last day: -1.00

Day's range: 1.30618 – 1.31209

52 wk range: 1.1450 – 1.3618

Yesterday aggressive sales on GBP/USD were observed. The pound weakened against the US dollar by more than 120 points. Today, the US dollar rally continued. At the moment, the price is testing the local support of 1.30600. The latest economic reports from the US were quite optimistic. Today investors are focused on statistics on the US labor market. Positions must be opened from the key levels.

The news background on the economic UK is calm.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone and continues to decline, which signals the sales of GBP/USD.

Stochastic Oscillator has reached the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 1.30600, 1.30000

Resistance levels: 1.31400, 1.32250

If the US labor market report is optimistic, we expect a further drop in GBP/USD. The target level of movement is 1.30000.

An alternative may be the correction of the GBP/USD currency pair to the level of 1.317500-1.32000.

The USD/CAD currency apir

Technical indicators of the currency pair:

Prev Open: 1.24701

Open: 1.25618

% chg. over the last day: +0.77

Day's range: 1.25613 – 1.25945

52 wk range: 1.2059 – 1.3795

At the moment the bullish sentiment is prevailing on USD/CAD. Yesterday, the Canadian dollar weakened against the US dollar by more than 100 points. The nearest resistance is a round level of 1.26000. The mark 1.25250 is already a "mirror" support. The news background is very busy today. The attention is focused on the labor market of the US and Canada.

The economic calendar for 2017.10.06:

- Statistics on the US and Canadian labor market at 15:30 (GMT+3:00);

- The index of business activity in Canada from Ivey at 17:00 (GMT+3:00).

Indicators point to the power of buyers. The USD/CAD quotes fixed above 50 MA and 200 MA.

The MACD histogram is in the positive zone and continues to rise, which signals a bullish sentiment on USD/CAD.

Stochastic Oscillator has reached the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/CAD.

Trading recommendations

Support levels: 1.25600, 1.25250, 1.24650

Resistance levels: 1.26000, 1.26500

If the price fixes above the round level of 1.26000, we recommend you to look for entry points to the market to open long positions. The movement is tending to 1.26750-1.27000.

An alternative may be the USD/CAD currency pair reduction to the level of 1.25250-1.25000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 112.754

Open: 112.816

% chg. over the last day: +0.04

Day's range: 112.759 – 113.064

52 wk range: 99.53 – 118.67

Currently, purchases are prevailing on USD/JPY. The currency is being traded near the offer zone of 113.100-113.250. The nearest support is located at 112.750. Demand for the US currency is at a fairly high level amid optimistic economic reports and rising yield on the US government bonds. Participants of the financial markets expect statistics on the labor market in the United States.

The news background on the economy of Japan is calm today.

The price has fixed above 50 MA and 200 MA, which signals the power of buyers.

The MACD histogram is located in the positive zone and above the signal line, which indicates a bullish sentiment on USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 112.750, 112.250

Resistance levels: 113.250, 114.000

If the price fixes above the level of 113.250, you need to look for entry points to the market to open long positions. The movement is tending to the round level of 114.000.

Alternative option. If the USD/JPY quotes overcome the level of 112.750, we recommend considering sales. The target level of movement is 112.250-112.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.